Include Inheritable Permissions From This Objects Parent

This is a brand new machine with a brand new install of Win 7 Ultimate 64 bit SP1. I'm having a problem with the inheritable permissions. In the Advanced Security Settings for one of my games, I'm trying to Include Inheritable Permissions From This Objects Parent. The check box has a check in it and it is grayed out but under Inherited From, is shows <not inherited>.

I click on Change Permissions, the Include Inheritable Permissions isn't grayed out and has a check in the box but when I click on Apply, it doesn't change the inheritable permissions. It's probably something I'm not savvy enough to catch but I think I'm at the limit of my knowledge with this. It shows me as Owner with all permissions but still having a problem getting it to start without a pop up asking if I want to let it run.

System Info Utility version 1.0.0.2
OS Version: Microsoft Windows 7 Ultimate, Service Pack 1, 64 bit
Processor: AMD FX(tm)-6100 Six-Core Processor, AMD64 Family 21 Model 1 Stepping 2
Processor Count: 6
RAM: 8120 Mb
Graphics Card: ATI Radeon HD 5450, 1024 Mb
Hard Drives: C: Total - 953766 MB, Free - 909586 MB; D: Total - 76316 MB, Free - 75388 MB;
Motherboard: ASUSTeK COMPUTER INC., M5A97 R2.0
Antivirus: avast! Antivirus, Updated and Enabled